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faust18 [17]
3 years ago
14

Liam borrowed a total of $35,000 to pay for college. he pays his parents 3% interest on the $8,000 he borrowed from them and pay

s the bank 6.8% on the rest. what average interest rate does he pay on the total $35,000? (round your answer to the nearest tenth of a percent.)
Business
1 answer:
Lana71 [14]3 years ago
6 0

Answer: Liam pays an average interest of 5.9% on the total $35,000.

Since the amounts borrowed and the respective interest rates are different, <u>the weighted average </u>will give us a better picture of the average interest paid on the loan.

We calculate weights based on the total amount borrowed.

                             Borrowing ($)                  Weights

Parents                     3000            \frac{3000}{35000} = 0.228571429

<u>Bank                       32000           \frac{32000}{35000} = 0.771428571 </u>

Total                       35000                                                                     1

Once we have the weights, we multiply the interest rates with the respective weights. Then we find the total of the (weights * Interest rate) column to find the weighted average or the average rate Liam pays.

                      Weights       Int Rates        Weights * Interest rates

Parents       0.228571429      0.03  0.228571429*0.03 = 0.006857143

<u>Bank           0.771428571       0.0680.771428571 *0.068 = 0.006857143</u>

Total                       1                                          0.059314286

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A liquor warehouse expects to sell 10,000 bottles of scotch whiskey in a year. Each bottle costs $12, plus a fixed charge of $12
Maksim231197 [3]

Answer:

500 bottles should be ordered at a time.

20 orders should the warehouse place in a year to minimize inventory costs.

Explanation:

The number of bottles which minimizes the warehouse cost is known as the economic order quantity.

Economic Order quantity minimizes both the holding or carrying cost of inventory as well as the ordering cost.

<em>Economic Order quantity = √((2 × Annual demand × cost per order) / Holding cost per unit)</em>

                                          = √((2 × 10,000 × $125) / $10)

                                          = 500 bottles

<em>Number of Order = Total Demand / Economic Order Quantity</em>

                             =  10,000 / 500

                             =  20 orders

Conclusion :

500 bottles should be ordered at a time.

20 orders should the warehouse place in a year to minimize inventory costs.

4 0
3 years ago
Efficiency wages A. increase productivity and reduce unemployment. B. increase productivity but increase unemployment. C. decrea
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Answer: The correct answer is "B. increase productivity but increase unemployment.".

Explanation: Efficiency salaries is a theory that says that some companies voluntarily offer salaries above the equilibrium level and this results in an increase in the productivity of their workers. As a negative issue, they can cause higher unemployment rates, since with salaries above the equilibrium salary, there is a consumer surplus. In addition, it would reduce the demand for more workers, as they have become more expensive.

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3 years ago
A $340,000 property sells at a 7ommission with a 50-50 co-brokerage split and a 50 gent split with her broker. what is agent's c
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The agent's commission is $5,950

A commission agent acts as a go-between for enterprises of all sizes when dealing with suppliers. A person in this position may operate in a variety of fields, including real estate, sales, and entertainment, as well as throughout the world. Additionally, a commission agent may simultaneously serve multiple companies.

An international agent who receives payment as a percentage of the sales they bring in. The Agent strictly complies with the sale terms specified to it by the Principal while making products available to potential customers in a certain territory (often a country). The Agent's and Principal's relationship is solely business-related; there is no employment connection between them.

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6 0
2 years ago
The accounts receivable balance is $1,000,000. After adjustment, the allowance for doubtful account balance is $40,000. Net Sale
larisa86 [58]

Answer:

$960,000

Explanation:

The net realizable value is the total cash that the company will expect to receive from their accounts receivable. The net realizable value (NRV) can be determined by:

NRV = total accounts receivable - allowance for doubtful accounts = $1,000,000 - $40,000 = $960,000

3 0
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tester [92]

Answer:

aesthetic

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Based on the information provided within the question it can be said that the change in color represents the aesthetic aspect of packaging. An aesthetic aspect refers to making sure that the packaging has an overall pleasant, positive, beautiful, or artful appearance in order to evoke positive emotions on the viewer. Which in this scenario is exactly what Feather Tissues Inc. is trying to accomplish by changing the color from red to blue, in order to please/attract their customers and in term increase sales.

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